20160129notice_of_application_order_no_33459.pdf

Office of the Secretary
Service Date
January 29,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA )
CORPORATION DBA AVISTA UTILITIES’)CASE NOS.AVU-E-16-O1
APPLICATION FOR AN ACCOUNTING )AVU-G-16-O1
ORDER RELATED TO COSTS INCURRED )
TO OFFER CUSTOMERS A FEE-FREE )NOTICE OF APPLICATION
PAYMENT PROGRAM.)
)NOTICE OF
)MODIFIED PROCEDURE
)
______________________________
)ORDER NO.33459
On January 13,2016,Avista Corporation dba Avista Utilities applied for an Order
authorizing it to record,as a regulatory asset,the costs it incurs to offer a fee-free payment
program to its residential customers.The Company does not seek to recover the costs now.
Rather,it requests an Accounting Order that will let it defer and record the costs so it will have
the opportunity to recover those costs through future rates.The Company asks the Commission
to process the Application by Modified Procedure.
With this Order,the Commission provides notice of the Application,and invites
interested persons to submit written comments.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Avista currently uses a third-party vendor to
process one-time payments that residential customers make through Avista’s web site or by
telephone.The vendor collects a $3.50 “convenience fee”if the customer pays by checking or
savings account but lacks an Avista “My Account”profile,or by credit or debit card.On the
other hand,customers with a “My Account”profile may pay by phone or Avista’s web site
without being charged a convenience fee.Customers also are not charged the fee if they pay by
check,cash,or pay station.
YOU ARE FURTHER NOTIFIED that Avista would like to eliminate the
“convenience fee”so its residential customers may pay their bills by any method without
incurring an extra charge.However,Avista does not want to create a fee-free payment program
if it will incur costs that will cause it and its shareholders to lose money.The Company thus
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33459 1
seeks to defer,for later recovery from customers through rates,the costs it incurs to set up and
offer the fee-free payment program.The Company expects the deferred costs will be about
S195.000 per year on an Idaho electric allocated basis.and about $120,000 per year on an Idaho
natural gas allocated basis.
YOU ARE FURTHER NOTIFIED that with this Application,the Company asks the
Commission to approve an accounting treatment that would let the Company defer the program
costs for up to 36 months from the month in which the program begins.Every six months,the
Company would update the Commission on program participation rates and fees incurred.Then,
after the Company has 12 to 18 months of history with the program,the Company would seek to
recover the program’s costs as part of a general rate case.In the rate case,the Company would
ask to amortize and recover the costs from all customers over a two-year period,with no return
on the unamortized balance.The Company also asks the Commission to approve this proposed
ratemaking treatment.As noted above,while the Company is asking to track the fee-free
program’s costs for possible future recovery through rates,the Company’s Application does not
seek to recover those costs,or increase rates,at this time.
YOU ARE FURTHER NOTIFIED that the Application and its exhibits have been
filed with the Commission and are available for public inspection during regular business hours
at the Commission offices.These documents are also available on the Commission’s web site at
www.puc.idaho.gov.Click on the “File Room”tab at the top of the page,scroll down to
“Electric Cases”or Natural Gas Cases,”and click on the case numbers as shown on the front of
this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commissions jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §sS 61-501 and -524.The Commission may enter any final Order consistent with its
authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure.IDAPA 31.01.01.000 ci seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter,and that it will proceed under
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33459
Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities
Commissions Rules of Procedure.See IDAPA 31.01.01.201 through .204.The Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on the
Company’s Application may file a written comment in support or opposition with the
Commission no later than March 14,2016.The comment must contain a statement of reasons
supporting the comment.Persons desiring a hearing must specifically request a hearing in their
written comments.Written comments concerning the Application shall be mailed to the
Commission and the Company at the addresses reflected below:
Commission Secretary David J.Meyer,Esq.
Idaho Public Utilities Commission Vice President and Chief Counsel
P0 Box 83720 for Regulatory &Governmental Affairs
Boise,ID 83 720-0074 Avista Corporation
P.O.Box 3727
Street Address for Express Mail:1411 E.Mission Avenue,MSC 13
Spokane,WA 99220-3 727
472 W.Washington Street E-mail:david .meyer(P4avistacorp,com
Boise,ID 83702-5918
Shawn Bonfield
Sr.Regulatory Policy Analyst
State and Federal Regulation
P.O.Box 3727
1411 E.Mission Avenue,MSC 27
Spokane,WA 99220-3 727
E-mail:[e-mail]
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at www,puc.idaho.gov.Scroll to the “Consumers”tab,click
the “Utility Case Comment or Question Form,”and complete the form using the case number as
it appears on the front of this document.These comments must also be sent to the Company at
the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,no later than March 21,2016.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33459 3
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set.the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons may file written comments no later than March 14,2016.The Company may
file a reply,if any,no later than March 21,2016.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this LITIi
day of January 2016.‘c A,
-7/-A,’7 --
PAUL KJELLANflER.PRÉSIDENT
t4f2J
KRISIINE RAPER,COMMISSIONER
ATTEST:
Jerin D Jewell /
Cmmission Secretary
O:AVU-E-1 6-OIAVU-G-I 6-OIkk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33459
ERIC ANDERSON,COMMISSIONER
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